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Morning Star Candlestick

- Reviewed by James Stanley, Nov. 24, 2021 The Morning Star candlestick is a three-candle pattern that signals a reversal in the market and can be used when trading forex or any other market. Correctly spotting reversals is crucial when trading financial markets because it allows traders to enter at attractive levels at the very start of a possible trend reversal. This article explores the following talking points: What is a Morning Star candlestick? How to Identify a Morn

Using the Rising Wedge Pattern in Forex Trading

- Reviewed by James Stanley, Nov. 24, 2021 The rising wedge is a popular reversal pattern that is predictive in nature and can give traders a clue to the direction and distance of the next price move. Rising wedges appear regularly in the financial markets and traders gravitate towards the pattern because of its simplicity in identification and application. This article will explain how to spot a rising wedge on forex charts and how to trade them. LEARN TO TRADE THE RISING WEDGE:

As a New Retail Trader Age Rises, Heed Tales of Past Manias

In spring 2020, the temporary closures of professional sports leagues during the initial coronavirus pandemic lockdown, coupled with the infusion of fresh capital into financial markets by the Federal Reserve and US Treasury, anointed a new class of retail traders in financial markets. This wave of new market participants brings with it a wave of liquidity that had been otherwise out of the reach of traditional financial markets. Click here to read 'Why a Rise in Reta

Lagging Indicators Defined and Explained

- Reviewed by James Stanley, Nov. 24, 2021 Lagging indicators are often misunderstood in their foundations however, they are a great way to analyse financial markets. This article will outline: What lagging indicators are Examples of lagging indicators Benefits of lagging indicators WHAT IS A LAGGING INDICATOR? A lagging indicator is a tool used by traders to analyse the markets using an average of previous price action data. There are multiple lagging indicato

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10 Trading Mistakes to Avoid in Forex Trading

- Reviewed by James Stanley, Nov. 24, 2021 Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Being aware of these errors, can help traders become more efficient in their forex trading. Although all traders make trading mistakes regardless of experience, understanding the logic behind these mistakes may limit the snowball effect of trading impediments. This article will o

The Psychology of Speculation in the Forex Market

Reviewed by Nick Cawley on December 16, 2021 Forex speculation is the name of the game in trading. Every trader, at some point or another, has to click ‘buy’ or ‘sell’ and commit to a position based on their analysis even though there is no guarantee of success. Unfortunately for traders, the market can have a very different viewpoint of the market and this can bring about a moment of serious introspection. This article seeks to deal with some of those har

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How to Be a Part Time Trader: Tips on Workflow and Strategy

- Reviewed by James Stanley, Nov. 24, 2021 Many people think that trading foreign exchange (FX) requires a lot of time to research the market and to identify trading opportunities. However, the 24-hour nature of FX makes it easier for part time day traders to take advantage of trends in currencies because they are not bound by when an exchange allows them to trade. Therefore, forex trading can be convenient for individuals who cannot afford to invest large quantities of time on trading.

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The New York Session: Forex Trading Tips

- Reviewed by James Stanley, Nov. 24, 2021 The New York forex session is one of the most liquid forex trading sessions. When the US session overlaps with the London forex market session it is considered to be the most liquid period of the day. WHAT TIME DOES THE NEW YORK FOREX SESSION OPEN? The New York forex session opens at 8:00 AM ET and closes at 5:00 PM ET. The ‘overlap’ occurs when the US Forex session overlaps with the London forex market session. The London Forex market se

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Forex Candlesticks: A Complete Guide for Forex Traders

- Reviewed by James Stanley, Nov. 24, 2021 WHAT ARE CANDLESTICKS IN FOREX? Forex candlesticks provide a range of information about currency price movements, helping to inform trading strategies Trading forex using candlestick charts is a useful skill to have and can be applied to all markets What could possibly be more important to a technical forex trader than price charts? Forex charts are defaulted with candlesticks which differ greatly from the more traditional bar cha

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Trading Inflation Expectations

Spiking inflation has been a hot-button topic in 2021, but U.S. Treasury yields have actually declined in recent weeks, suggesting there may be more to this story than meets the eye. This story ran in June 2021 and may have dated references, but it remains relevant and a fascinating read for traders Like an ominous scene from a classic horror movie, rising inflation in 2021 was expected to be the boogeyman that killed the “everything rally” in 2021. But with the S&P 500 u

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The Forces of Supply and Demand

- Reviewed by James Stanley, Nov. 24, 2021 The primitive forces of capitalism rule markets like the laws of gravity. Buyers and sellers provoke a battle to find a happy medium agreement in every financial market. As prices dance around on charts, traders are often looking for reasons to explain price movements however, the underlying source of price movement boils down to the relationship between supply and demand. Generally, positive news means increased demand and lessened supply – e

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What is FOMO in Trading? Characteristics of a FOMO Trader

- Reviewed by James Stanley, Nov. 24, 2021 FOMO – Fear of Missing Out - is a relatively recent addition to the English language, but one that is intrinsic to our day-to-day lives. A true phenomenon of the modern digital age, FOMO affects 69% of millennials, but it can also have a significant bearing upon trading practices. For instance, the feeling of missing out could lead to the entering of trades without enough thought, or to closing trades at inopportune moments because it’s what o

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Using the COT Report in Forex Trading

- Reviewed by James Stanley, Nov. 24, 2021 The COT report is a weekly sentiment report that can provide forex traders with important information on the positioning of currency pairs. Issued by the Commodities Futures Trading Commission (CFTC) the COT report can be cross-referenced with a trader’s underlying forex strategy. The forex market is not the only financial market included in the COT report analysis, which makes this valuable commentary for all traders. COT Report Analysis

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Harami Candlestick Patterns: A Trader’s Guide

TRADING WITH THE HARAMI CANDLE: MAIN TALKING POINTS The Harami candlestick pattern is frequently used in forex trading to identify trend reversals or extensions. Technical traders respect the indications produced by the Harami candle which makes this pattern invaluable in a trader’s arsenal. This article will cover the following principal topics outlining the Harami candlestick pattern in forex: What is a Harami candlestick? Uses of the Harami candle in forex trading Har

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Stock Trader Sara Goldstein on Developing an Expertise

STOCK TRADER SARA GOLDSTEIN ON DEVELOPING AN EXPERTISE Sara Goldstein clearly remembers the cold day in January 2015 when the Swiss National Bank suddenly dropped its cap on the franc sending the safe-haven currency soaring against the Euro. In minutes, the Swiss Franc rose nearly 30% against the Euro. The move bankrupt some stock traders caught on the wrong side of the trade. “There are different types of volatile days. There are the ones you can predict, like a Fed rate decision, and th

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Trading Journal: What it is and How to Create One

- Reviewed by James Stanley, Nov. 24, 2021 WHAT IS A TRADING JOURNAL? A trading journal is a log that you can use to record your trades. Traders use a trading journal to reflect upon previous trades so that they may evaluate themselves, and you should too! You can use journals to evaluate where you can improve your trading. They are a useful form of record keeping. WHY TRADING JOURNALS ARE USEFUL Main reasons to keep a trading journal include: They help you identi

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7 Step Trading Checklist Before Entering Any Trade

- Reviewed by James Stanley, Nov. 24, 2021 The video above focuses on the main aspects of the trading checklist and this article seeks to unpack further aspects of the trading checklist in greater detail. WHY YOU SHOULD USE A TRADING CHECKLIST Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Maintaining a trading checklist presents traders with a list of questions

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How to Set Up Effective Trading Goals

- Reviewed by James Stanley, Nov. 24, 2021 TRADING GOALS - MAIN TALKING POINTS: Why set trading goals? What your trading goals shouldn't be The effectiveness of process-oriented goals Goal tracking and measuring your progress Trading goals: A summary Setting trading goals can be a useful endeavor to help you navigate the markets, but some goals are more useful to set than others. In this piece, we’ll look at th

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What Type of Forex Trader Are You?

- Reviewed by James Stanley, Nov. 24, 2021 There are many types of forex traders, and each demands a different approach. Whether you choose the fast-paced sprint of day trading or the prolonged marathon of position trading, selecting the right style for you will maximize your chance of success. Read on to learn more about the types of forex traders active in the world’s largest market. THE SIX DIFFERENT FOREX TRADER TYPES Forex traders tend to fit into one of the following six tra

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3 Trading Exit Strategies – How to Exit a Profitable Trade

- Reviewed by James Stanley, Nov. 24, 2021 TRADING EXIT STRATEGIES THAT ARE EFFECTIVE: Traditional stop/limit (using support and resistance) Moving average trailing stops Volatility based approach using ATR Traders focus a lot of their energy on spotting the perfect time to enter a trade. While this is important, it is ultimately where traders choose to exit trades that will determine how successful the trade is. This article hones in on 3 trading exit strategies th

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Dovish vs Hawkish: How Monetary Policy Affects FX Trading

- Reviewed by James Stanley, Nov. 24, 2021 You have probably heard a financial news presenter say something along the lines of “The central bank governor came out slightly hawkish today after bouts of strong economic data”. The terms Hawkish and Dovish refer to whether central banks are more likely to tighten (hawkish) or accommodate (dovish) their monetary policy. Central bank policy makers determine whether to increase or decrease interest rates, which have significant impact on the

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Crude Oil Trading Strategies and Tips

Reviewed by Nick Cawley on December 14, 2021. CRUDE OIL TRADING STRATEGIES AND TIPS Crude oil is ranked among the most liquid commodities in the world, meaning high volumes and clear charts for oil trading. Oil traders should understand how supply and demand affects the price of oil. Both fundamental and technical analysis is useful for oil trading and allows traders to gain an edge over the market. Traders should follow a risk conscious crude oil trading strategy

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What is Leverage in Forex? Forex Leverage Explained

- Reviewed by James Stanley, Nov. 24, 2021 Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Traders of all levels should have a solid grasp of what forex leverage is and how to use it responsibly. This article explains forex leverage in depth, including how it differs to leverage in stocks, and the importance of risk management.

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Psychological Levels & Round Numbers in Forex Trading

Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. This article will cover the following key areas about psychological levels and round numbers in forex trading: Psychological level definition Identifying psychological levels Using psychological levels to trade forex Advantages and limitations of psychological levels WHAT ARE PSYCHOLOGICAL LEVELS AND HOW DO THEY W

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